Profits 38% higher for food and beverage group Agthia

Agthia third quarter profits were boosted by improved sales and a drop in general and admin expenses.

Agthia, the food and beverage group behind brands such as Al Ain water and Grand Mills flour, posted a 38 per cent rise in profits for the third quarter of the year, boosted by improved sales and better margins.

The Abu Dhabi-listed company on Wednesday announced profits of Dh46.3 million for the three months to September, compared with Dh33.5m in the corresponding period last year, prompted by a 13.4 per cent rise in revenues.

“We have seen a strong performance of the group in this quarter and the business is well positioned to sustain strong performance in quarters to come, both through organic growth and by seizing opportunities that arise in the UAE and in other markets,” said the Agthia chairman Dhafer Al Ahbabi.

At Agthia’s consumer business division, responsible for products such as Al Ain water, Yoplait fresh dairy products and Capri-Sun juices, net sales rose 17 per cent to Dh159.7m during the quarter, with profit before group expenses up 22 per cent to Dh17.7m.

Net sales rose 11 per cent to Dh250m at the group’s flour and animal feed division, with profit before group expenses increasing 17 per cent to Dh42.7m.

“Without doubt this period has further consolidated the strong year Agthia has had so far, with both the consumer and agri business divisions continuing to perform well,” said Agthia’s chief executive Iqbal Hamzah.

“We are addressing areas of underperformance and remain focused on driving the profitable growth of core businesses, while diversifying our product portfolio and widening our distribution reach.”

Agthia shares fell by nearly 6 per cent in early trading on Wednesday, before recovering to close up 1 fils at Dh6.41. The shares are 45 per cent higher year-to-date.

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